Quarterly Financial Report for FCAC for the quarter ended December 31, 2023
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For more information, contact:
Financial Consumer Agency of Canada
427 Laurier Ave. West
Ottawa, ON K1R 1B9
www.canada.ca/en/financial-consumer-agency
ISSN 2816-7821
©His Majesty the King in Right of Canada, as represented by the Minister of Finance Canada, February 2024.
Aussi disponible en français sous le titre : Rapport financier trimestriel de l'ACFC pour le trimestre terminé le 31 décembre 2023
Introduction
The Quarterly Financial Report (QFR) for the Financial Consumer Agency of Canada (FCAC, or the Agency) has been prepared by management as required by section 65.1 of the Financial Administration Act and in the form and manner prescribed by the Treasury Board.
The Financial Consumer Agency of Canada Act (the Act) outlines FCAC’s functions and administration and enforcement powers and lists the sections of federal laws and regulations under its supervision. A description of its program activities can be found in FCAC’s Business Plan 2023-2024.
The QFR has not been subjected to an external audit or review.
Basis of presentation
This quarterly report has been prepared by management using an expenditure basis of accounting. The accompanying Statement of Authorities includes the Agency’s spending authorities as set out in section 13 of the Act. This quarterly report has been prepared using a special purpose financial reporting framework designed to meet financial information needs with respect to the use of spending authorities.
The Agency uses the full accrual method of accounting to prepare and present its annual financial statements that are part of the departmental results reporting process. However, spending authorities included in this report remain on an expenditure basis.
Highlights of the fiscal quarter and the fiscal year-to-date (YTD) results
Quarterly results
FCAC’s total expenditures for the three months ended December 31, 2023, totalled $12,937,046 or 77.2% of its budgeted expenditures of $16,764,424 for the period, compared to 88.6% for the same period last year. The variance to budget as at December 31, 2023 of $3,827,378 is primarily due to lower than planned personnel costs ($1,558,308), and timing delays related to professional services costs ($1,455,679).
When compared to the previous year, FCAC’s total expenditures for the three months ended December 31, 2023 of $12,937,046, were $201,787 or 1.6% higher than the same period last year. This variance is primarily due to the growth of the Agency, as well as economic and merit increases; offset by lower than planned acquisition of land, building and works, and acquisition of machinery and equipment due to the Ottawa office modernization project.
Year-to-date results
FCAC’s total expenditures for the nine months ended December 1, 2023, totalled $37,677,314 or 80.3% of its budgeted expenditures of $46,907,467 for the period, compared to 86.9% for the same period last year. The variance to budget as at December 31, 2023 of $9,230,153 is primarily due to lower than planned personnel costs ($5,074,228), and to timing delays related to professional services ($3,311,755).
When compared to the previous year, FCAC’s total expenditures for the nine months ended December 31, 2023 of $37,677,314, were $310,168 or 0.8% higher than the same period last year. This variance is primarily due to increases in personnel costs ($4,788,691) due to the planned growth of the Agency, as well as economic and merit increases, offset by lower than planned spending in acquisition of land, buildings and works costs ($4,042,062) and acquisition of machinery and equipment ($812,181) due to the Ottawa office modernization project that occurred in 2022-23.
Risks and uncertainties
Enterprise risk management
The environment in which FCAC operates carries an array of risks to the achievement of its mandate and objectives. While many of these challenges are always present, the extent to which they pose a financial risk to FCAC’s objectives varies, depending on economic and financial conditions, and the financial industry environment and its impact on financial consumers. FCAC’s ability to achieve its mandate depends on the timeliness and effectiveness with which it identifies, evaluates, prioritizes, and develops initiatives to address areas where it is most at risk.
Economic, industry and supervisory environment
FCAC operates in a rapidly evolving financial marketplace, including increasingly complex financial products and new technology developed to suit the needs and demands of today’s consumers. This may impede FCAC’s ability to keep pace with this rapid rate of change.
FCAC must continue to assess the impact of these changes and be prepared to re-allocate funding while remaining flexible. FCAC must also stay abreast of new developments and discussions, both domestically and internationally, and leverage resulting opportunities, while managing risks to ensure the continued achievement of its mandate.
Financial risks
Financial risks, primarily liquidity and credit risks, are closely managed and continue to be rated low.
Significant changes in operations, personnel and programs
There were no significant changes in Operations, Personnel and Programs during the quarter ended December 31, 2023.
Approved by:
Judith Robertson
Commissioner
Financial Consumer Agency of Canada
Werner Liedtke, CPA, CMA
Chief Financial Officer
Financial Consumer Agency of Canada
January 18, 2024
Statement of Authorities (unaudited)
Authority | Total available for use for the year ending March 31, 2024* | Used during the quarter ended December 31, 2023 | Year-to-date used at quarter end |
---|---|---|---|
Payments under Section 13 of the Financial Consumer Agency of Canada Act | $64,223,152 | $12,937,046 | $37,677,314 |
Spending of Amounts Equivalent to Proceeds fromDisposal of Surplus Moveable Crown Assets | - | - | - |
Total authorities | $64,223,152 | $12,937,046 | $37,677,314 |
Authority | Total available for use for the year ending March 31, 2023* | Used during the quarter ended December 31, 2022 | Year-to-date used at quarter end |
---|---|---|---|
Payments under Section 13 of the Financial Consumer Agency of Canada Act | $60,776,347 | $12,735,259 | $37,367,036 |
Spending of Amounts Equivalent to Proceeds from Disposal of Surplus Moveable Crown Assets | 110 | - | 110 |
Total authorities | $60,776,457 | $12,735,259 | $37,367,146 |
Note: Totals may not add due to rounding.
*Includes only authorities available for use at quarter-end.
Departmental budgetary expenditures by Standard Object (unaudited)
Expenditures | Planned expenditures for the year ending March 31, 2024 | Expended during the quarter ended December 31, 2023 | Year-to-date used at quarter end |
---|---|---|---|
Personnel | $42,546,879 | $8,974,202 | $25,995,408 |
Transportation and communications | 928,822 | $143,280 | 446,406 |
Information | 2,648,304 | $280,429 | 690,058 |
Professional and special services | 12,966,292 | $2,039,579 | 6,342,462 |
Rentals | 3,641,048 | $1,047,214 | 2,710,372 |
Repair and maintenance | 6,158 | $903 | 10,825 |
Utilities, materials and supplies | 63,894 | $19,920 | 54,843 |
Acquisition of land, buildings and works | 375,491 | $141,869 | 542,514 |
Acquisition of machinery and equipment | 795,746 | $275,293 | 549,029 |
Other subsidies and payments | 250,518 | $14,357 | 335,398 |
Total gross budgetary expenditures | $64,223,152 | $12,937,046 | $37,677,314 |
Note: Totals may not add due to rounding.
Expenditures | Planned expenditures for the year ending March 31, 2023 | Expended during the quarter ended December 31, 2022 | Year-to-date used at quarter end |
---|---|---|---|
Personnel | $34,205,760 | $7,278,797 | $21,206,717 |
Transportation and communications | 706,871 | 146,665 | 246,399 |
Information | 1,451,738 | 380,084 | 712,743 |
Professional and special services | 12,194,547 | 2,319,331 | 6,858,743 |
Rentals | 3,355,397 | 733,910 | 2,192,650 |
Repair and maintenance | 6,039 | 1,275 | 3,080 |
Utilities, materials and supplies | 71,753 | 15,446 | 43,159 |
Acquisition of land, buildings and works | 5,690,000 | 1,017,629 | 4,584,576 |
Acquisition of machinery and equipment | 2,838,746 | 824,499 | 1,361,210 |
Other subsidies and payments | 255,606 | 17,623 | 157,868 |
Total gross budgetary expenditures | $60,776,457 | $12,735,259 | $37,367,146 |
Note: Totals may not add due to rounding.
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